Govt sets aside 54 billion/- for compensation along oil pipeline path

The Government has set aside 54.2 billion/- for compensating for properties which will be demolished to give way for the construction of crude oil pipeline from Hoima, Uganda to the Indian Ocean port of Tanga in Tanzania.

Presenting ministry’s budget estimates for the financial year 2018/19 the Minister for Energy, Dr. Medard Kalemani told members of Parliament on the progress of the implementation of the crude oil pipeline project from Uganda to Tanzania was gradually gaining pace.

The minister said front end engineering design and endorsement of intergovernmental agreement by the two countries’ had been concluded so far.

He further added that the project, which is expected to be completed in 2020 is being implemented by a special purpose vehicle involving project partners namely Total (France), Tullow (United Kingdom), CNOOC (China) as well as governments of Tanzania and Uganda at the cost of US dollars 3.5 billion (about TZS 8.07 trillion).

According to the minister, among other activities to be implemented in this project during 2018/19 financial year include detailed engineering design, shareholding agreement (SHA) and host government agreement (HGA).